PENSION BENEFITS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

Eversource Service sponsors a defined benefit retirement plan ("Pension Plan") that covers eligible participants. In addition to the Pension Plan, Eversource maintains non-qualified defined benefit retirement plans sponsored by Eversource Service ("SERP Plans"), which provide benefits in excess of Internal Revenue Code limitations to eligible participants. Eversource Service also sponsors a defined benefit postretirement plan that provides life insurance and a health reimbursement arrangement created for the purpose of reimbursing retirees and dependents for health insurance premiums and certain medical expenses, to eligible participants that meet certain age and service eligibility requirements ("PBOP Plan").

In August 2016, the Company amended its PBOP Plan, which standardized separate benefit structures that existed within the plan and made other benefit changes. The remeasurement resulted in a prior service credit of $5.3 million and $16.1 million for the three and nine months ended September 30, 2017, respectively, which was reflected as a reduction to net periodic benefit expense for PBOP benefits. The majority of this amount will be deferred for future refund to customers.

The components of net periodic benefit expense for the Pension, SERP and PBOP Plans are shown below. The net periodic benefit expense and the intercompany allocations, less the capitalized portions of pension, SERP and PBOP amounts, are included in Operations and Maintenance expense on the statements of income. Capitalized amounts relate to employees working on capital projects and are included in Property, Plant and Equipment, Net on the balance sheets. Pension, SERP and PBOP expense reflected in the statements of cash flows for CL&P, NSTAR Electric, PSNH and WMECO does not include the intercompany allocations or the corresponding capitalized portion, as these amounts are cash settled on a short-term basis.



	Pension and SERP
Eversource	For the Three Months Ended						For the Nine Months Ended
(Millions of Dollars)	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Service Cost	$	17.4		$	18.6		$	53.8		$	56.6
Interest Cost	47.2			46.4			140.7			139.2
Expected Return on Pension Plan Assets	(83.5		)	(79.4		)	(250.5		)	(238.5		)
Actuarial Loss	33.9			31.4			101.3			94.2
Prior Service Cost	1.2			0.9			3.4			2.6
Total Net Periodic Benefit Expense	$	16.2		$	17.9		$	48.7		$	54.1
Capitalized Pension Expense	$	5.5		$	5.4		$	16.5		$	16.8

	PBOP
Eversource	For the Three Months Ended						For the Nine Months Ended
(Millions of Dollars)	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Service Cost	$	2.4		$	3.0		$	7.1		$	9.2
Interest Cost	6.8			7.5			20.3			26.5
Expected Return on Plan Assets	(16.0		)	(15.9		)	(47.8		)	(47.3		)
Actuarial Loss	2.2			3.0			6.9			5.0
Prior Service Credit	(5.3		)	(3.6		)	(16.1		)	(3.7		)
Total Net Periodic Benefit Income	$	(9.9	)	$	(6.0	)	$	(29.6	)	$	(10.3	)
Capitalized PBOP Income	$	(4.8	)	$	(2.6	)	$	(14.3	)	$	(4.6	)



	Pension and SERP
	For the Three Months Ended September 30, 2017												For the Three Months Ended September 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	4.6		$	3.1		$	2.4		$	0.7		$	4.6		$	3.3		$	2.5		$	0.8
Interest Cost	10.5			8.6			5.3			2.1			10.2			8.5			5.1			2.1
Expected Return on Pension Plan Assets	(17.8		)	(17.5		)	(10.0		)	(4.4		)	(18.0		)	(16.9		)	(9.6		)	(4.4		)
Actuarial Loss	6.8			8.9			3.0			1.5			6.3			8.7			2.5			1.3
Prior Service Cost	0.4			0.1			0.1			0.1			0.4			—			0.1			0.1
Total Net Periodic Benefit Expense/(Income)	$	4.5		$	3.2		$	0.8		$	—		$	3.5		$	3.6		$	0.6		$	(0.1	)
Intercompany Allocations	$	2.4		$	1.8		$	0.8		$	0.5		$	3.5		$	2.2		$	1.0		$	0.6
Capitalized Pension Expense	$	2.4		$	1.9		$	0.4		$	0.1		$	2.2		$	2.0		$	0.4		$	0.1

	Pension and SERP
	For the Nine Months Ended September 30, 2017												For the Nine Months Ended September 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	13.9		$	9.4		$	7.3		$	2.3		$	14.3		$	9.9		$	7.5		$	2.4
Interest Cost	31.3			25.6			15.9			6.3			31.2			25.3			15.4			6.3
Expected Return on Pension Plan Assets	(53.9		)	(52.5		)	(29.9		)	(13.3		)	(54.2		)	(50.7		)	(28.9		)	(13.1		)
Actuarial Loss	20.7			26.4			8.7			4.5			19.2			25.8			7.5			4.1
Prior Service Cost	1.1			0.2			0.4			0.2			1.1			—			0.3			0.2
Total Net Periodic Benefit Expense/(Income)	$	13.1		$	9.1		$	2.4		$	—		$	11.6		$	10.3		$	1.8		$	(0.1	)
Intercompany Allocations	$	7.4		$	5.5		$	2.5		$	1.4		$	10.3		$	6.7		$	3.0		$	1.9
Capitalized Pension Expense	$	7.3		$	5.4		$	1.1		$	0.3		$	7.1		$	5.7		$	1.0		$	0.3



	PBOP
	For the Three Months Ended September 30, 2017												For the Three Months Ended September 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	0.5		$	0.3		$	0.3		$	0.1		$	0.6		$	0.6		$	0.4		$	0.1
Interest Cost	1.3			1.9			0.8			0.3			1.3			2.5			0.7			0.3
Expected Return on Plan Assets	(2.4		)	(6.6		)	(1.4		)	(0.6		)	(2.5		)	(6.4		)	(1.4		)	(0.6		)
Actuarial Loss	0.2			0.9			0.1			—			0.5			1.2			0.2			—
Prior Service Cost/(Credit)	0.3			(4.3		)	0.2			—			0.2			(2.9		)	0.1			—
Total Net Periodic Benefit (Income)/Expense	$	(0.1	)	$	(7.8	)	$	—		$	(0.2	)	$	0.1		$	(5.0	)	$	—		$	(0.2	)
Intercompany Allocations	$	(0.2	)	$	(0.2	)	$	(0.1	)	$	—		$	—		$	(0.1	)	$	—		$	—
Capitalized PBOP Income	$	(0.1	)	$	(4.0	)	$	—		$	(0.1	)	$	—		$	(2.2	)	$	—		$	(0.1	)

	PBOP
	For the Nine Months Ended September 30, 2017												For the Nine Months Ended September 30, 2016
(Millions of Dollars)	CL&P			NSTAR Electric			PSNH			WMECO			CL&P			NSTAR Electric			PSNH			WMECO
Service Cost	$	1.5		$	1.1		$	1.0		$	0.3		$	1.4		$	2.5		$	0.9		$	0.3
Interest Cost	4.0			5.7			2.3			0.8			4.0			10.3			2.2			0.8
Expected Return on Plan Assets	(7.3		)	(19.9		)	(4.1		)	(1.7		)	(7.6		)	(19.2		)	(4.2		)	(1.7		)
Actuarial Loss	0.7			2.6			0.4			—			0.9			1.7			0.5			—
Prior Service Cost/(Credit)	0.8			(12.9		)	0.4			0.1			0.2			(2.9		)	0.1			—
Total Net Periodic Benefit Income	$	(0.3	)	$	(23.4	)	$	—		$	(0.5	)	$	(1.1	)	$	(7.6	)	$	(0.5	)	$	(0.6	)
Intercompany Allocations	$	(0.5	)	$	(0.7	)	$	(0.3	)	$	(0.1	)	$	0.3		$	—		$	—		$	—
Capitalized PBOP Income	$	(0.4	)	$	(11.9	)	$	—		$	(0.2	)	$	(0.5	)	$	(3.3	)	$	—		$	(0.3	)